The Debt Management Office (DMO) has set the record straight on Nigeria’s debt servicing costs, dismissing claims that the federal government spent a staggering N611.71 billion on servicing a domestic US dollar bond in March 2025.

In a statement issued on Thursday, the DMO clarified that the actual amount used to service Nigeria’s domestic US dollar bond for March 2025 was N67.99 billion — not the much larger figure circulating in the media.

According to the agency, the widely quoted N611.71 billion figure is misleading. It represents the total debt service on all Federal Government of Nigeria (FGN) bonds for March, excluding the US dollar bond. Meanwhile, the specific debt service on the dollar bond stood at just N67.99 billion.

“For the avoidance of doubt,” the DMO emphasized, “our official Q1 2025 report clearly separates these figures. Domestic FGN bonds totaled N611.71 billion in debt service for March, while the domestic US dollar bond service was N67.99 billion.”

The DMO also stressed that there was no principal repayment on the US dollar bond in March. “This bond is due for full repayment only in 2029,” the agency noted.

📊 Nigeria’s debt keeps growing

The clarification comes against the backdrop of Nigeria’s rapidly increasing public debt. As of March 31, 2025, the country’s total debt stock had ballooned to N149.39 trillion — up by N27.72 trillion (about 22.8%) compared to the same time last year.

Breaking it down, domestic debt rose to N78.76 trillion, marking a 20% rise year-on-year. Of this, the Federal Government owed N74.89 trillion, while states and the FCT accounted for N3.87 trillion. Interestingly, state debts actually dipped slightly from N4.07 trillion in Q1 2024.

On the external side, Nigeria’s debt climbed to N70.63 trillion ($45.98 billion) from N56.02 trillion ($42.12 billion) a year earlier, reflecting continued reliance on foreign borrowing.

🚨 Why does this matter?

With Nigeria’s debt hitting new highs, accurate reporting on what the country is spending to service these obligations is critical. The DMO’s swift clarification helps clear misconceptions and reassures the public that, while Nigeria’s debt burden is undoubtedly heavy, some of the alarming figures making the rounds are simply incorrect.

The agency wrapped up by reaffirming its commitment to transparency and urged analysts and the media to rely on verified figures directly from its official publications.

Bottom line? Nigeria did not spend N612 billion on servicing a single US dollar bond in March. The true figure was N68 billion, while the much larger amount related to all domestic naira-denominated bonds combined.